Microsoft Inks Major 3.6 Million Ton Carbon Removal Deal with Beaver Lake
December 12, 2025
In a significant move to advance its ambitious climate goals, Microsoft has entered into a long-term agreement for 3.6 million metric tons of carbon removal, marking one of the largest engineered carbon removal deals to date. This transaction underscores the growing corporate demand for high-quality, verifiable carbon credits as major technology firms race to neutralize their historical and operational emissions.
The tech giant has signed a 12-year offtake agreement with Beaver Lake Renewable Energy (BLRE), a subsidiary of green methanol company C2X, for carbon removal units (CRUs) generated from a new biomethanol production facility. The project, located on the site of a former paper mill in Pineville, Louisiana, represents a total investment of approximately $2.5 billion. Currently in the engineering phase, construction is slated to begin in the second half of 2026, with commercial operations expected by 2029.
The facility is designed to convert forestry residues into bio-methanol, capturing the biogenic CO2 produced during the process. Beaver Lake claims the plant will produce over 500,000 tons of biomethanol annually while capturing and permanently storing one million tons of CO2 each year. Under the deal, Microsoft will receive CRUs equivalent to 3.6 million tons of CO2 removal over the contract period. The company states that all associated lifecycle emissions will be accounted for to ensure net removal, and carbon benefits will be carefully allocated between the bio-methanol product and the CRUs to prevent double-counting. The project has been registered on an ICROA-endorsed registry and will undergo independent third-party verification.
Brian Davis, CEO of C2X, commented on the partnership, stating, "The Beaver Lake project combines the benefits of bio-methanol production for customers in hard-to-abate sectors with permanent carbon removals. We appreciate the leadership of Microsoft in the engineered carbon removal market and their collaboration to finalize this agreement."
Phillip Goodman, director of carbon removal portfolio at Microsoft, added, "The BLRE project provides a unique opportunity for large-scale carbon removal, while driving broader decarbonization initiatives through green methanol production. We value the technical and commercial expertise of the C2X team, which has demonstrated commitment to sustainable biomass sourcing, rigorous carbon accounting, and thoughtful engagement of the project’s surrounding community."
This agreement is the latest in a series of strategic carbon removal purchases by Microsoft, which has emerged as one of the world's largest corporate buyers in this nascent market. The company's recent portfolio includes a 300,000-ton deal with mineralization firm Arca, a 28,900-ton agreement with enhanced rock weathering company Undo, and multi-million-ton purchases from carbon capture and storage projects in Denmark and sustainable farming initiatives. The scale of the Beaver Lake deal signals a maturation of the carbon removal industry, moving from pilot-scale projects to commercial deployments capable of delivering climate impact at the megaton level.
Source: datacenterdynamics
Microsoft Inks Major 3.6 Million Ton Carbon Removal Deal with Beaver Lake
